Cheapest electricity tariff for a home with oil heating (UK)

Tariff types that matter for oil-heated properties

Decision checklist (quick)

• Do you have Economy 7? If yes, compare both E7 and single-rate results.
• Do you heat hot water electrically? Timers/immersion can push you towards E7 or time-of-use.
• Is your annual kWh low? Prioritise tariffs with a lower standing charge (but still check unit rate).
• Do you want flexibility? Look for low/no exit fees and shorter terms (availability varies).
• Payment method: Direct Debit vs pay-as-you-go can change available tariffs.

Who it suits / who it doesn’t

Does having oil central heating make electricity cheaper?

Not directly. Electricity prices are based on your region, meter type, payment method and the tariff you choose. Oil heating can reduce your electricity usage, which can change which tariff works out cheapest overall.

Is Economy 7 worth it if I heat my home with oil?

It can be, but only if you use enough electricity at night (for example, an immersion heater on a timer or storage heaters). If most of your electricity is used in the daytime, Economy 7 can cost more because the day rate is often higher.

What electricity usage should I enter if I don’t know my kWh?

Use your latest annual kWh from a bill if you can. If you only know what you pay per month, you can still compare, but it’s less accurate because bills can include credit/debit adjustments. The most reliable route is to check your bill’s “kWh used” figure for the last 12 months.

Do I need a smart meter to get the cheapest electricity tariff?

Not necessarily. Many standard single-rate and Economy 7 tariffs don’t require a smart meter. Some time-of-use tariffs may require one and may need half-hourly readings. Your quote results should indicate what’s available for your meter.

Will switching electricity supplier affect my oil deliveries or boiler?

No. Electricity switching is separate from heating oil. Your oil supplier and delivery arrangements won’t change, and your boiler continues to operate as normal (it still needs electricity for controls).

Can I change from Economy 7 to a single-rate meter?

Often yes, but it depends on your current meter setup and your supplier’s process. There may be a meter change required, and it can take time to arrange. It’s worth comparing costs first—if you benefit from night rates, you may prefer to keep Economy 7.

Are “no standing charge” tariffs a good idea for low electricity use?

They can be, but they’re not always available and the unit rate can be higher. The only safe way to judge is by comparing the estimated annual cost using your kWh. Focus on the total annual estimate and terms rather than a single headline feature.

What should I check before choosing a fixed electricity tariff?

Check the contract length, any exit fees, how the supplier handles the end of the fixed term, and whether the tariff requires a specific payment method. If you expect your electricity use to change (e.g. adding an EV or electric hot water), flexibility may matter more than a headline price.

Editorial details

Written by:

EnergyPlus Editorial Team

Reviewed by:

Energy Specialist

Last updated:

July 2026

How we assess “cheapest” for oil-heated homes

We define “cheapest” as the lowest estimated annual electricity cost shown in your comparison results for your postcode and meter type, using the usage inputs you provide (or estimates if you don’t know your kWh).

• We prioritise total annual estimate over single features (like unit rate alone), because oil-heated homes may have lower kWh and standing charges can be a bigger share.
• We separate tariff structure decisions (single-rate vs Economy 7 vs time-of-use) from oil heating itself, because oil purchases are independent of electricity supply.
• We highlight eligibility constraints (meter type, smart meter requirements, payment method) because they can make a “cheap-looking” tariff unavailable in practice.